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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST

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To: Norrin Radd who wrote (4042)9/27/1998 11:10:00 PM
From: DJBEINO   of 9582
 
Mitsubishi Elec To Shift German Plant From DRAMs To System Chips

TOKYO (Nikkei)-Mitsubishi Electric Corp. (6503) plans to stop making memory chips at its German plant early next year, shifting that facility instead to system chips and other devices for digital equipment, company sources said.

The change is part of a strategy to improve the performance of the firm's semiconductor division, which has been experiencing hard times.

The German plant currently turns out mainly 16-megabit DRAMs, and was supposed to start making 64-megabit chips this fall. But Mitsubishi Electric has abandoned that idea, because at present market prices the chips would not be profitable.

In addition to system chips, the plant will produce SRAM and flash memory modules, targeting manufacturers of cellular phones and other digital gear, much in demand in Europe.

Mitsubishi Electric will invest 2-3 billion yen to retool the product facilities.

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